2023 Real Estate Trends What you Need to Know

 

The real estate market is ever-changing, and it can be tough to keep up with the latest trends. That’s why we’ve put together this list of 8 real estate market trends you need to know in 2023. From the continued rise in home prices to the rise of the Millennial first-time homebuyer, these trends will shape the real estate market in the coming year. So whether you’re looking to buy a home or invest in property, make sure you stay up-to-date on these trends!

 

 

 

 

The real estate market is expected to shift back towards favoring buyers in 2023. Inventory of available homes is growing, thanks in part to an increase in new construction. This means that buyers have a greater selection of homes to choose from, as well as more negotiating power when it comes to securing a lower price. Additionally, mortgage rates continue to remain near historic lows, making financing easier for those looking to purchase a home. The rise of the Millennial first-time homebuyer: Millennials, defined as those born between 1982 and 2004, are now the largest generational group of homebuyers in the US. This age group is finally starting to buy homes in droves after being largely overlooked for the past decade. Millennial first-time homebuyers are the prime demographic for sellers since they typically don’t have any homes to sell. They’re also often willing to pay more for a property, as they usually have sizable savings to put towards a down payment.

 

 

Home prices continue to surge in 2023, as demand remains strong and inventory levels remain low. Low mortgage rates, a lack of available inventory, and fierce competition among buyers are all factors driving up home prices. The good news is that the increase in home prices is expected to slow over the course of 2023, as the market adjusts to the current reality of limited inventory.

 

 

After many years of sky-high prices for renters, rental prices are starting to level off. This could be in part due to the fact that more people are now able to buy homes, which has resulted in a decrease in demand for rental units. Additionally, a number of cities have implemented rent control policies in the past few years, helping to keep rental prices stable.

 

 

While city centers have long been the first choice for homebuyers, more people are now looking to the suburbs for their next home. Plentiful greenspace and larger home sizes are two main draws to the suburbs, which explains why they’re so popular amongst Millennial first-time homebuyers. Additionally, suburban areas often have lower taxes and prices than city centers, giving buyers more bang for their buck.

 

 

The real estate market is expected to see an uptick in new construction in 2023, as builders look to capitalize on the growing demand for homes. New home starts are on the rise, thanks in part to federal tax credits and other incentives that are designed to encourage builders to create more affordable housing. This could be great news for those looking to buy a new home, as more choices often result in lower prices.

 

 

While Millennials are the largest buying demographic, other age groups are also on the rise when it comes to purchasing homes. Those aged 35 to 44 represent the second largest group of homebuyers in the US, followed by those aged 45 to 54. This shift towards buyers from all generations is great news for sellers, as it means that more homes are being sold on the market.

 

 

 

The South and the West remain the most desirable locations for those looking to purchase a home. These regions have seen a huge influx of population in recent years, thanks to their affordable housing and abundance of job opportunities. Additionally, these regions are also seeing more businesses move in, as they’re closer to major port cities and international destinations. All of this means that these regions are likely to be hotspots in 2023.

 

The real estate market is always changing and it can be hard to keep up with the latest trends. Knowing what’s going on in the real estate market is essential for those looking to buy or invest in real estate in 2023. This list of 8 real estate market trends will help you stay up-to-date on the market and make sure you don’t miss out on any opportunities!

 

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